This paper models the housing sector, mortgages and endogenous default in a DSGE setting with nominal and real … housing demand shock. Next we use our estimated model to evaluate a policy that reduces the principal of underwater mortgages …

Housing is the greatest asset held by most households, and it is an important determinant of their financing and … consumption decisions. Despite the fact that measuring housing wealth is crucial for understanding households' economic behavior … data requirements while still meeting international guidelines. Our results suggest housing wealth in Mexico has followed …